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Goldman Stopped Out Of Short 10 Year Trade
Back on January 23 we first reported that Goldman had opened a new trade whereby it was shorting 10 Year bonds. To wit: As of a few hours ago, Goldman's Francesco Garzarelli has officially told the firm's clients to go ahead and short 10 Year Treasurys via March 2012 futures, with a 126-00 target. While Garzarelli is hardly Stolper, the fact that Goldman is now openly buying Treasurys two days ahead of this week's FOMC statement makes us wonder just how much of a rates positive statement will the Fed make on Wednesday at 2:15 pm. From Goldman: "Since the end of last August, we have argued that 10-yr US Treasury yields would not be able to sustain levels much below 2% in this cycle. Yields have traded in a tight range around an average 2% since September, including so far into 2012. We are now of the view that a break to the upside, to 2.25-2.50%, is likely and recommend going tactically short. Using Mar-12 futures contracts, which closed on Friday at 130-08, we would aim for a target of 126-00 and stops on a close above 132-00." As a reminder, don't do what Goldman says, do what it does, especially when one looks the firm's Top 6 trades for 2012, of which 5 are losing money, and 2 have been stopped out less than a month into the year." Sure enough, we just got this: "On January 23, we recommended going short 10-yr US Treasuries using Mar-12 futures, for a target of 126-00 (roughly corresponding to 2.5% on the 10-yr rate). At yesterday’s close, we hit our stop loss set at a close above 132-00. We reiterate our fundamental conviction in this directional stance, and would look for opportunities to re-engage. With a large structural deficit, rising trailing inflation and a central bank emphasizing job creation, longer-maturity US Treasury bonds do not rest on solid foundations."
Net result: Goldman X + 1, Clients 0... but "looking to opportunities to re-engage "
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We should start trading against these clowns.
Well, that's exactly what Goldman does, trading against these clowns . . . . I mean these clients.
Let me assure you, NOBODY does that better.
Time to short now then?
There are layers of clients, who get truth, lies, truth, lies in an alternating pattern. Maybe there will be a phase shift when too many figure out the game. No big whoop.
Not even Carly Simon
You haven't already?
you didn't yet????
Every day is opposite day at Blankfeinistan.
GS looking to re-engage their dicks in clients' asses no doubt.
Yaarr!
Mind if I drop this pearl necklace in yer booty trunk!?
Yarr!
Yesterday I had a dream where I was outside on a bright but not too sunny a day looking to the sky when I saw multiple planetsized mandelbrot fractals floating through the space. Some were smaller and some larger, but all still so big that you could understand that they were moving towards the earth in the solar system and you could see them from the earth with naked eyes. A little girl was scared and asked me what they were and in the dream I didn't know. I responded to her - "they are black holes".
Am I on to something?
Also when you looked at them from different angles their "insides" would change, like looking at a julia set. I was sure one of them was going to consume the earth.
Psychosis? Or reality? Depends on the perspective I guess.
Nothing to worry about... (Unless they had "squid like" tentacles, in which case, be very afraid)...
sorry for being off topic but did anyone hear the latest Jim Sinclair interview on his website jsmineset.com?
very eye-opening
Was Stopler in on that one too??
I have a dream, One day Goldman's will ask the US Treasury where's all our money gone and the US Treasury will answer it got vaporised. Never gonna happen? Hey Obama is President ain't he?
Agree with the mantra, "don't do what Goldman says..." but when their trades are losing money, I don't really want to do what they do either at this point?
Goldman owns LMAX which is supposed to revolutionize the retail FX industry. Armada Markets is the partner of LMAX serving clients around the globe on behalf of LMAX. We'll see.
these trades are ridiculous, gambling, not investing, and they are shitty gamblers
And their clients still cannot figure this out. We got it 2 years ago.
But it will be the trade of the decade, next to gold. Just the timing, as always. Watch rates every day, because at some point bonds go SPLATT!
If The Squid wasn't doing God's work I would say it should be cut into little rings and deep fried.
Deep fried squid causes heart disease and alzheimers. Most forget why they went into the trade (or how it turned out), or there would be no more squid clients left.
the fact that Goldman is now openly buying Treasurys two days ahead of this week's FOMC statement makes us wonder just how much of a rates positive statement will the Fed make on Wednesday at 2:15 pm
FOMC? naaah, look deeper.. what else will happen in MARCH ?
The only thing that should be discussed re: goldman, is shutting it down and arresting the gangsters for all their crimes against the people